EXPRESSIONS USED IN BANKING CORRESPONDENCE

EXAMPLES OF LETTERS

1. Request for credit references.

The East-London Bank

London

Bel-England Co., London,

Attn. Mr. Johnson, Area Manager.

Subject: Credit Enquiry Concerning Belmetal Co.

Dear Mr. Johnson,

Would you kindly send us a summary of your credit experience with Belmetal Co. We assure you that your response will be kept strictly confidential.

In applying for a loan from our bank this Byelorussian company gave your name as a reference. We therefore should like to hear from you about the paying habits, credit terms, limits, etc. of Belmetal.

We will greatly appreciate your help in this matter and shall be glad to assist you in a similar manner. Thank you in advance for your time and consideration.

Yours sincerely,

Edward Green,

Vice-President.

2. Opening a bank account

Manchester Trade Co.,

Manchester.

The East-London Bank,

To the President.

Dear Sir,

Our Manchester Trade Co. Intends to open a branch of its business in London, and we should like to open a current account with you for the use of the management of this branch.

The Manager's name is Dale Cooper and he is authorized to sign cheques on our behalf. The cheques will also carry the second signature of the branch cashier, Mr. Peter Carter.

Will you please make arrangements for these two gentlemen to visit your bank in order to provide specimens of their signature and fulfill other necessary formalities.

Our references can be obtained by you from the Manchester First Bank who will be pleased to provide you with any details concerning the Manchester Trade Co.

Yours faithfully,

3. Company asking bank to finance a scheme under government guarantee.

Moscow, Oct...., 200..

The German Development Bank,

Frankfurt.

Dear Sirs,

We should like to inform you that our company, ‘’Mosdorstroy’’, has concluded a contract worth 6, 000, 000 DM with the German Company, specializing in road machinery, "Machinenwerk", for the supply of road construction equipment.

The Russian government has given its approval for the contract to be financed within the framework of the joint European Bank/Russia program under the government payment guarantees.

Should you be interested in financing the contract, we will be glad to hear from you soon.

Best regards,

General Manager,

Boris Ivanov.

4. Bank agreeing to give loan to a company.

Landing Bank, England

London, October..., 200...

Rossconstruction Company,

Mr. Sergei Alexeev, General Manager.

Dear Mr. Alexeev,

Our bank is pleased to have been a long-standing partner of your company and appreciates the chance to have had those mutually beneficial business opportunities that we had over the recent years.

As for your latest proposal, I can inform you that our bank can lend you up to 20 mln USD as the sole provider. We suggest an 8-year loan at a fixed rate of interest of 11% per annum, with quarterly repayments.

A bigger package that you mention can also be organized with our help, provided we go ahead with our principal loan.

Sincerely

John Greeley,

Manager.

5. Bank requesting a debtor company to pay outstanding sum.

Fintechbank,

Helsinki, Finland

November 21, 200...

St Petersburg

"Neva-Import" Company.

Attention Mr. Petrov.

Dear Mr. Petrov,

Last year your company took a loan from our bank which we thought the beginning of a long and fruitful cooperation. Nowadays, however, we find out that your company has gone into debt, which, as you informed us, is the result of the latest severe economic crisis.

You are writing about difficulties in repaying interest and the need to put off repayments generally. You also refer to the informal and friendly relationship that we've had with you.

However, I must point out that the economic crisis you refer to has hit our country as severely as it did yours. Our small bank is in serious financial difficulties, therefore I propose to you the following: I want the outstanding 50 thousand USD immediately, and you can forget about interest.

This will represent a considerable gain for your company, and the friendly relations that you mention should help us come to an agreement. Otherwise we will have to resort to legal procedures which, as you know, our bank has all the chances of winning.

Sincerely

Leino Keskula,

Manager.

6. Bank reminding bank of due payment, principal and interest.

Landing Bank, London

St Petersburg Industry and Construction Bank

Re. 1174 - Loan agreement dd. 23. 03. 07.

We want to inform you that for the a/m7 loan the following amounts are due on Jan. 31, 2007:

principal USD

1, 665, 744. 0

interest USD

83, 435. 0.

We kindly ask you to remit these amounts to our a/c No... as stipulated in the a/m agreement (Art. 6).

We thank you for your cooperation.

Best regards...

7. Bank reminding bank of due payment.

Landing Bank, London

St Petersburg Bank, St Petersburg

According to Art- 6 and Art. 7 of the Loan agreement dd. Apr. 10, 2008, and your schedule of repayment, interest amounting to____ and principal repayment amounting to_____ are due on Nov. 12, 2007.

Please authorize us to debit your current account with the sum of____ and quote our Ref. No-... in your SWIFT authorization.

Best regards.,

WORDS AND EXPRESSIONS